How the Hunt for Al Capone Transformed the IRS

Gangsters, banksters, and politicians: The story of how the IRS became a powerful government tool.

Apr. 2, 2026 at 7:05am

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In this episode of the Throughline podcast, historians and experts explore how the government's pursuit of notorious gangster Al Capone in the 1930s led to a major transformation of the Internal Revenue Service (IRS). The IRS, once a relatively obscure agency, became a formidable law enforcement tool that could investigate and prosecute high-profile criminals and tax evaders.

Why it matters

The story of how the IRS evolved from a little-known bureaucracy into a powerful government agency with the ability to take down even the most notorious criminals like Al Capone provides insight into the modern role and capabilities of the IRS. This history also sheds light on the ongoing debates around the IRS's authority, funding, and use as a political weapon.

The details

Guests on the podcast, including historian Joe Thorndike, retired IRS agent Paul Camacho, and others, discuss how the IRS's pursuit of Capone for tax evasion rather than his violent criminal activities ultimately led to his downfall. This case demonstrated the IRS's potential as an investigative force, paving the way for the agency to take on high-profile targets in the years that followed.

  • The episode originally aired in May 2025.
  • Al Capone was convicted of tax evasion in 1931.

The players

Al Capone

A notorious gangster in the 1920s and 1930s who was ultimately taken down by the IRS for tax evasion rather than his violent criminal activities.

Joe Thorndike

A historian for Tax Analysts and author of "Their Fair Share: Taxing the Rich in the Age of FDR".

Paul Camacho

A retired special agent for the IRS Criminal Investigation Division and member of the board of directors at the Mob Museum in Las Vegas.

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What they’re saying

“The IRS, once a relatively obscure agency, became a formidable law enforcement tool that could investigate and prosecute high-profile criminals and tax evaders.”

— Joe Thorndike, Historian

“The story of how the IRS evolved from a little-known bureaucracy into a powerful government agency with the ability to take down even the most notorious criminals like Al Capone provides insight into the modern role and capabilities of the IRS.”

— Paul Camacho, Retired IRS Agent

The takeaway

The transformation of the IRS, sparked by the pursuit of Al Capone, highlights the agency's evolution into a formidable law enforcement tool capable of investigating and prosecuting high-profile criminals and tax evaders. This history sheds light on the ongoing debates around the IRS's authority, funding, and use as a political weapon.